The Resource Avoiding traps

Avoiding traps

Avoiding traps
Avoiding traps
The authors share their experiences of some unexpected share scheme traps and how to avoid falling into them. When operating share plans, particularly for private companies, some areas can cause problems. This article focuses on the two tax-advantaged share plans that they most commonly see: enterprise management incentive (EMI) options and company share option plans (CSOPs). Successive governments' belief in the benefits of employee ownership has led to a range of tax-advantaged employee share incentives. Each plan has its own inherent conditions and quirks, particularly for unlisted companies. CSOP and EMI have separate rules, but there are two important interactions. Shares acquired under EMI options are eligible to the entrepreneurs' relief 10% rate of capital gains tax. CSOP qualifying company tests are less stringent than for EMI, but tax advantages are restricted. Overlooking the small print can result in partial or complete loss of valuable tax reliefs
Citation source
In: Taxation. - Sutton. - Vol. 177 (2016),
  • Wilson, S
  • Bowdler, E
  • Oyeneyin, T
Geographic coverage
  • Europe
  • European Union
Language note
  • employment incentive
  • employee share plan
  • tax relief
Avoiding traps

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
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